The White House seized on today's new job-loss numbers as a reassuring sign for the nation's economic growth and recovery, but congressional Republicans said the numbers paint a continued grim picture.
House Minority Leader John Boehner and other Republicans also quickly cast the numbers as another sign that President Obama and congressional Democrats should shelve any plans to allow the Bush-era tax breaks to expire as scheduled in January.
The nation's unemployment rate increased by a tenth of a percentage point from July to 9.6 percent, according to the Bureau of Labor Statistics -- all but shutting the door on congressional Democrats' hopes of an eleventh-hour economic turnaround as they face a possible GOP surge in the Nov. 2 midterm elections.
But that increase was lower than most economic analysts expected, noted Christina Romer, the outgoing head of Obama's Council of Economic Advisers. Romer also stressed that private-sector payrolls increased by 67,000 in August -- the eighth consecutive month of private-sector job growth.
In addition, the government's estimates of private-sector job growth for June and July have been revised up by a total of 66,000. Since last December, private-sector employment has risen by 763,000.
But Boehner and other Republicans emphasized that the Department of Labor numbers show that overall payroll employment still actually fell by 54,000 in August with the elimination of 114,000 temporary Census jobs.
That rise in unemployment was driven mainly by the addition of more than 500,000 people into the labor force -- not a decline in the number of jobs.
Romer acknowledged the job growth is not as large as needed to bring the unemployment rate down quickly.
"Today's numbers are reassuring that growth and recovery are continuing," she said, but "the fact that the growth of private-sector payrolls is below the level needed to keep up with normal growth of the labor force is obviously unacceptable."
"There are a number of steps we could take to help increase private-sector job growth and put the economy on a path of steadily declining unemployment," said Romer. "We will be working with Congress on these measures in the coming weeks."
But Boehner and other congressional Republicans said the new numbers show that the policies being pursued by the White House and congressional Democrats continue to contribute to an economic climate that is inhibiting growth.
"And to top it off," added House Minority Whip Eric Cantor, Obama, House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid "still insist on implementing one of the largest tax hikes in American history -- despite growing bipartisan opposition. That's exactly the wrong prescription for what's ailing this country."
Boehner said House Republicans will return to Washington later this month to offer "a clear and positive governing agenda focused on cutting Washington spending and getting people working again." He said the GOP plan has been devised by listening to the American people -- "not political-season panicking by Washington insiders."
In her own statement, Pelosi said the news that the private sector continued to add jobs in August shows actions taken by Democrats in Congress "are moving us in the right direction, despite solid opposition from Republicans."
She also warned, "Republicans promise to take us back to the failed Bush agenda that got us into this mess in the first place. We must keep America moving in a new direction -- not back to the reckless policies that cost us more than 8 million jobs and weakened the value of our homes, retirements and college savings."
"We are not going back," said Pelosi.
Want to stay ahead of the curve? Sign up for National Journal’s AM & PM Must Reads. News and analysis to ensure you don’t miss a thing.
Join the Discussion